Cindy Ho, VP of Finance at Discrete Components, Inc

question 63

Multiple Choice

Cindy Ho, VP of Finance at Discrete Components, Inc.(DCI) , theorizes that the discount rate offered to credit customers affects the average collection period on credit sales.Accordingly, she has designed an experiment to test her theory using four sales discount rates (0%, 2%, 4%, and 6%) .Cindy wants to control for the size of the customer but not to test for it as the main variable, so she classified DCI's credit customers into three categories by total assets (small, medium, and large) .Then, she randomly assigned four customers from each category to a sales discount rate.Cindy's experimental design is a ________.

• A)normalized block design
• B)completely randomized design
• C)factorial design
• D)randomized block design
• E)partially randomized design

---

Definitions:

Halloween

An annual holiday celebrated on October 31, characterized by activities like trick-or-treating, costume parties, and carving pumpkins into jack-o'-lanterns.

Payoff Matrix

A table that describes the possible outcomes of different strategies in a strategic situation, helping in decision making.

Best Interest

A principle requiring decisions to be made in the welfare or benefit of those affected, commonly used in legal, financial, and fiduciary contexts.

Commit

To pledge or bind oneself to a certain course or policy; often implies dedicating resources or time.